1. Given the following three-equations system, (a) explain why this is not a simultaneous-equations model. (b) Could OLS be used to estimate each equation of this system? Why?
2. (a) What is meant by identi?cation? (b) When is an equation of a system exactly identi?ed? (c) Overidenti?ed? (d) Underidenti?ed? (e) Are these rules su?cient for identi?cation?